French logistics giant eyes to launch electric barges on inland waterways in Vietnam

CMA-CGM Group, a French shipping and logistics company, has plans to deploy electric barges, initially on inland waterways in Vietnam.

Such a project is designed to integrate and maximize the efficiency of multimodal transport that entails maritime, inland waterway, road, and rail networks, said Mathieu Friedberg, senior vice president of commercial and agencies network at CMA CGM Group, at a meeting with Vietnamese Deputy Prime Minister Tran Hong Ha in Hanoi on Tuesday.

Friedberg briefed that CMA-CGM is running four shipping lines serving six international seaports and offering 15 international routes to Europe, the U.S., and several service routes between ports.

For his part, Deputy PM Ha said Vietnam welcomes and encourages the use of renewable energy-powered means of transport that contribute to green energy transition and reduce greenhouse gas emissions in the transport sector.

To facilitate that energy transition, the Vietnamese government has introduced the direct power purchasing agreement (DPPA) mechanism that allows renewable energy generators to sell electricity directly to large corporate customers. In addition, Vietnam allows rooftop solar installations for self-consumption.

“These policies can pave the path for CMA-CGM to carry out its electric barge project, including investing in charging station systems,” Ha noted.

In addition, CMA-CGM can access financing under the Just Energy Transition Partnership (JETP) between the Vietnamese governments and international financial institutions and foreign government to fund future projects on green energy transition and green transportation in Vietnam.

Ha tasked the Ministry of Transport with working closely with CMA-CGM to assess the potential and needs of Vietnam’s inland waterways; pilot the electric barge operation; and work out regulations for renewable energy-powered charging systems.

He also called on CMA-CGM to launch new solutions for Vietnam’s port development strategy, focusing on smart ports, green ports, infrastructure for renewable energy and green fuels, digital transformation, artificial intelligence, and automation.

With a presence in 160 countries through 400 offices, 750 warehouses, 160,000 employees and a wide fleet of 620 vessels, CMA CGM serves 420 of the world’s 521 commercial ports and operates 257 shipping lines.

It had $47 billion in global revenue in 2023. Group revenue stood at $15.8 billion in Q3/2024, up 38.5% year-on-year, driven mainly by the shipping business. EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $5 billion and the margin came in at 31.4%, up 14.0 points.